The International Financial Services Centres Authority (IFSCA) has issued a circular clarifying that Banking Units in an International Financial Services Centre (IFSC) can open foreign currency accounts for persons residing in India. The circular, dated August 13, 2025, clarifies that the term “foreign currency account with a bank outside India,” as defined in the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015, includes accounts opened with an IFSC Banking Unit (IBU). This means that individuals residing in India can open these accounts without seeking prior permission from the IFSCA. This directive, issued under the powers of the IFSCA Act, 2019, is effective immediately.
International Financial Services Centres Authority
Circular No. e-file No. IFSCA-FMPP0BR/4/2024-Banking Dated: August 13, 2025
To,
All Banking Units in IFSC
Madam/Sir,
Subject : Opening of an account of a person resident in India
1. IBUs may please refer sub-paras (B) to (F) of para 5 (Opening, holding and maintaining a Foreign Currency Account outside India) of the Foreign Exchange Management (Foreign Currency Accounts by a Person Resident in India) Regulations, 2015 dated January 14, 2015 January 21, 2016 (as amended) that specify circumstances in which a person resident in India may open, hold and maintain a foreign currency account with a bank outside India.
2. It is hereby clarified that the term “foreign currency account with a bank outside India” used in the abovementioned regulations shall include an account opened with an IBU in any of the specified foreign currencies.
3. IBUs may therefore open such accounts for persons resident in India without prior permission of the Authority.
4. This Circular is issued in exercise of powers of section 12 and 13 of the IFSCA Act, 2019, and this Circular shall come into force with immediate effect.
Yours faithfully
(Supriyo Bhattacharjee)
Chief General Manager
Department of Banking
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International Financial Services Centres Authority
Circulars No. e-file No. IFSCA-FMPP0BR/4/2024-Banking | Dated: August 13, 2025
CORRIGENDUM
To,
All Banking Units in IFSC
Madam/Sir,
Subject: Circular on “Opening of an account of a person resident in India” dated August 13, 2025 – Corrigendum
1. In the circular dated August 13, 2025, on the subject “Opening of an account of a person resident in India”, under para 1, the words, and figures, “January 14, 2015” shall be read as “January 21, 2016”.
2. This Circular is issued in exercise of powers of section 12 and 13 of the IFSCA Act, 2019 and this Circular shall come into force with immediate effect.
Yours faithfully
(Supriyo Bhattacharjee)
Chief General Manager
Department of Banking
